1. Forming A Nation President Washington

2. Did You Know? The dome that visitors see today on the United States Capitol is actually the second that topped it. The first dome, designed by Boston architect Charles Bulfinch, was finished in 1824. It was covered by copper. But by the 1850’s, it was thought to be tool low and unimpressive. It was removed in 1856 to make way for the new dome that still graces the building.

3. President Washington Although Washington thought he was going to retire after the war, he was elected to be the first president of the United States under the federal Constitution. On April 30, 1789, he took the oath of office. John Adams became vice president.

4. President Washington Washington was aware of the difficulties and decisions the had to face. He would establish precedents that would shape the future of the United States. He would make many decisions especially about the structure of the government.

5. President Washington Congress set up a cabinet with three departments: 1.The State Department to handle relations with other nations. Headed by Thomas Jefferson 2.The Treasury Department to deal with financial matters. Headed by Alexander Hamilton 3.The War Department to provide for the national defense. Headed by Henry Knox.

6. President Washington Congress created the office of attorney general to handle to government’s legal affairs. Edmund Randolf was the first attorney general. Congress also established the office of postmaster general to direct the postal service.

7. President Washington Washington met regularly with the three department heads, or secretaries, and the attorney general, which became known as the cabinet.

8. President Washington Congress was divided as to how much power the president should have over the executive departments. The president appointed the department heads with the Senate’s approval. Congress gave the president authority over hiring and firing cabinet officers so that he did not need the Senate’s approval to dismiss someone.

9. President Washington This strengthened the president’s position and created a major separation between the legislature and executive branches.

10. President Washington The Judiciary Act of 1789 created the federal court system. The federal courts have 13 district courts and 3 circuit courts. State laws would remain, but federal courts would have the power to reverse state decisions.

11. President Washington The Supreme Court was to be the highest court with final authority.

12. Financial Problems Hamilton as secretary of the treasury, tried to find a way to strengthen the country’s financial problems. He proposed what became known as the Hamilton Plan.

13. Financial Problems The Hamilton Plan: 1.The new government should pay off the millions of dollars spend in debts owed by the Confederate government to other countries and to individual citizens. 2.The federal government should assume the debts of the states.

14. Financial Problems There was opposition to Hamilton’s plan. Congress agreed to pay money to other nations, but they could not agree to pay off the debts to American citizens.

15. Financial Problems When the government borrowed money during the war, it issued bonds, or paper notes, promising to repay the money in a given period of time. Speculators bought many of the original bonds for less than their value, and opponents said this would make the speculators rich.

16. Financial Problems The original bond holders were also opposed because they lost money, only to make more if Hamilton’s plan was enacted.

17. Financial Problems The Southern states also presented opposition because their state debt was less than the Northern states, and they would have to pay more than their share under Hamilton’s plan.

18. Financial Problems Hamilton proposed a compromise plan. He agreed to a proposal by Southern leaders to move the nation’s capital from New York City to a special district in the South between Virginia and Maryland. This became Washington D.C. The Southerners then agreed to support his plan to pay off the state debts.

19. Financial Problems Discussion Question # 1: How did Hamilton’s plan proposed to strengthen the economy? Hamilton’s plan proposed to pay off the growing debt from the war by paying : 1.Foreign countries the money that was borrowed. 2.Pay off the state debts 3.Pay off the bonds bought by American citizens By paying the debt Hamilton believed that he could rebuild the country’s financial reputation and strengthen the nation. Without such a large debt, the nation would be able to use its money to grow instead of towards interest payment on the debt.

20. Financial Problems Discussion Question # 2: What were the oppositions to Hamilton’s plan and how were they resolved? Congress not did agree to pay off debts to citizens. Southern states opposed to paying off the debts of Northern states but agreed if the nation’s capital was moved to the south.

21. Building the Economy Hamilton also proposed the creation of 1.the national bank, the Bank of the United States 2.A tariff, or tax, on imports 3.National taxes to help the nation’s economy.

22. Building the Economy Before the bill to create a national bank was proposed, only state banks existed. Madison and Jefferson opposed the idea of a national bank, saying that it would benefit the wealthy and was unconstitutional.

23. Building the Economy Hamilton said that Congress had the power to create a bank even though the Constitution had no provisions. The president signed the bill, creating the Bank of the United States.

24. Building the Economy Hamilton proposed a protective tariff on imports. He hoped this would protect American industry from foreign competition and encourage people to buy American goods.

25. Building the Economy The South opposed this tax because they had little industry to protect. Hamilton did win support in Congress for some low tariffs to raise money.

26. Building the Economy Hamilton’s economic program also called for creating national taxes. The government could have additional funds to operate and use to make interest payment s on the national debt. Congress approved a variety of taxes, including one on American whiskey.

27. Building the Economy Hamilton’s economic program gave the country new financial powers. His opponents, including Madison and Jefferson, feared a nation government with strong economic powers to protect the wealthy.

28. The Whiskey Rebellion Farmers resisted paying a tax on the whiskey they made. They usually exchanged whiskey and other items for goods they needed rather than buying goods with cash. ( barter system)

29. The Whiskey Rebellion In July 1794, federal officers came into western Pennsylvania to collect a tax. The resistance turned into an armed protest that was called the Whiskey Rebellion. A large mob attacked tax collectors and burned buildings.

30. The Whiskey Rebellion President Washington sent an army to quiet the rebellion. His actions showed people that the government would use force to maintain social order.

31. The Whiskey Rebellion Compare the Whiskey Rebellion with Shay’s Rebellion. What are the similarities?